PRICE INVESTIGATION

Bay of Plenty Beacon, Volume 2, Issue 125, 19 February 1940, Page 5

PRICE INVESTIGATION

PAPER MILL PRODUCTS

MANAGER CONTINUES EVIDENCE

The hearing of the Whakatane Paper Mills' application to the Price Investigation Tribunal for permission to increase its prices was continued on Thursday when Mr 11. A. Horrocks, managing-director of the company, continued his evidence. At the request of Sir Wise, witness undertook lo supply a list of prices of the company's products and those made in Australia or imported there. Again in answer to Mr Wise, witness said if the prices sought were approved the company would have all the capital necessary to carry on. Mr Wise said the last wages agreement was made in 1938 and there had been no increase. How did this justify an increase in price from £13' to £2(i a ton? Witness replied that it was thought timber could be landed at the mills at £3 a cord, but a suitable boat could not be obtained to work the Whakatane Bar and the upper reaches near Motakana Island. Rail transport there had to be used. Mr Wise: It was a question of error of calculation? Witness replied that the timber prices had not panned out as cheaply as estimated. Further, all raw materials had increased in price. To make a comparison between present prices in wartime and the original estimate was not a l'a'.r guide as to the degree in which the original estimate was incorrect. Former Importer's Evidence. Harry Victor Everton, of Auckland. of the firm of Neill, Cropper and Company, Limited, said this company had been the largest importer of cardboard into iNew Zealand up till the end of 1937, when the agency of a large American concern was given up and that for Wha katane taken over. He had been more than 20 years with his firm. Witness said it would be correct to state that, outside of chipboard, the prices now suggested by the company were lower than those at which similar goods could be imported. There would be no difficulty in selling at the prices suggested. Fourth Day's Hearing. Evidence on Friday was given by the Mill Superintendent, Mr Eric Frasdadt, who said that all stages of the manufacturing process were operating 100 per cent efficiently. Mr Everton. a witness of the previous day, was recalled by Mr H. P. Richmond, who is appearing for the company and asked Questions ldative to the collective placing of boxmakers' orders. William Drummond Barclay, registered accountant, of Auckland, a specialist in cost accountancy, said that following instructions at the end of January he went to Whakatane to make a report on the existing system of accounts and to make any suggestions as to future costing. The company's system of accounts, was well devised. He had expressed the opinion at the time, however, that the costing system could be extended. The hearing will be continued today.